Then N. said, "Take your daughter back! Take your daughter back!" I had no idea what he was talking about, didn't even realize at first that he was quoting something, and certainly didn't recognize the quote. N. said, "Remember when Paddington went backstage?"
Aha! N. was referring to an episode in "A Visit to the Theatre" in A Bear Called Paddington that we'd read (probably several times) years ago, when Paddington doesn't realize that the people on stage at a play he attends are playing roles. He goes back stage at the intermission to try to patch things up between the characters. N.'s momentary mistake about the name of the girl who played Annie immediately reminded him of this moment in the story.
I love how this conversation reveals unconscious cognition at work. N. didn't consciously search his memory for something that would help make sense of a funny mistake that he was a little bit embarrassed about. But the story jumped to the front of his mind through the power of association. Reading (and being read aloud to) gives us access to a wealth of life experiences through which we can understand our own.